Five times bigger than the Titanic, this is what the newest cruise ship
looks like today – and it’s booking out fast.
The cruise industry is the most rapid growing tourism sector, generating billions.
We visited Cozumel in Mexico to see what all the fuss is about.
We wanted to know what literally powers
this multi-billion-dollar industry?
On this episode of Transforming Business,
we’re rocking the boat.
Things used to be different.
Cruising was a fancy affair.
Yes, there were swimming pools and first-class dining.
But the liners themselves were a lot smaller.
They carried around 3,000 passengers per trip.
And overall, the industry was marked by a certain refinement and manner.
Now, here we are today.
This is the largest cruise ship ever built.
It’s called Icon of the Seas and measures 365 meters long.
And can carry 10,000 people at a time – just over three-quarter
of those passengers.
Icon of the Seas is reflective of the rise and rise
of a booming cruise industry.
This ship has just launched and is already open for
reservations in 2025.
Cruise passenger numbers globally are set to hit 36 million this year,
and that figure is expected to continually increase.
But what’s literally powering all of this?
Technically in the case of Icon of the Seas it’s liquified
natural gas or LNG.
It’s seen as a more environmentally friendly fuel.
More on that later.
We asked its owners Royal Caribbean for an interview
on its sustainability strategy.
A representative from the company never materialised
within our deadline.
But we did manage to get hold of Carnival Corporation –
the biggest cruise company in the world.
One of its slogans: “Sustainable from ship to shore”.
"We recognize we have a need
to maintain a pristine environment
because that’s what people come to see.
They don’t want to go to see things that have deteriorated.
They want to see beautiful places and we try to take them there."
That’s Bill Burke who’s charged with making Carnival
a safer company for the environment.
Here are the top five cruise ports in the world.
Every year, millions of people visit.
Port Miami in the U.S. tops the list.
We travelled to the Mexican island of Cozumel in the Caribbean Sea.
It's part of one of the largest barrier reefs in the world.
“A cruise gives you the opportunity to visit
many different islands throughout your seven days.”
“You can hit so many different ports.
The ships are amazing and there are so many things to do on them.”
“You go on a cruise for one week and you can spend
1,000-2,000, but you have everything.”
We did our own internet search and found that you can actually get a
weeklong cruise to the Caribbean for around 635 dollars.
Plus taxes and port fees.
And under the trendy banner of sustainable tourism
or climate consciousness.
In fact, one study says that half of all Americans believe cruise holidays
are environmentally friendly.
And this green badge is worn proudly by the top 3 cruise companies –
Carnival, Royal Caribbean and Norwegian.
Norwegian is trying out biofuel mix blends and continues
to use marine gas oil.
In the longer-term, it sees green methanol as a promising
source of power.
Carnival and Royal Caribbean continue to use traditional fuels,
and they both tout the current use of LNG.
“It’s the best fuel available today for us to use
from a greenhouse gas perspective.
And so we pioneered that within the industry.”
Carnival has nine LNG ships, with two more on order,
and when they’re all on stream or on shore, rather,
the guest capacity of those 11 ships will represent 20% of its fleet.
That’s a significant investment in a fossil fuel.
The company’s first LNG capable vessel is reported
to have cost 950 million dollars to build.
But, I guess, being the world’s biggest cruise company,
Carnival has the money to burn.
Literally.
The cruise industry is expected to generate revenue to the tune
of just over 30 billion dollars this year.
In 2027, the indicator is that this figure will jump
to almost 36 billion dollars.
And the regions cruise ships stop at, also benefit.
A study from the cruise industry body – says that passengers, alone,
spend about 100 dollars at visiting cruise ports.
In Cozumel, local businesses sing the praise of the cruise sector, in chorus.
“Undoubtedly the cruise industry is the one
that brings the most benefit to the island.
We also have national tourists, but what gives us the most impact is the international cruise.”
"The cruise tourism to Cozumel is 90%
the reason we have jobs on the island."
"In the particular case of Cozumel,
we are approaching 400 million dollars
in economic benefits for a population
that does not reach 200,000 inhabitants."
But what are the hidden costs?
According to one study, cruising is more than double the
carbon emissions of flying and staying in a four-star hotel.
Various cities, including one of Europe’s busiest ports – Barcelona –
have moved to restrict cruise ships because of their emissions.
Norway has also announced that from 2026, only vessels with
zero emissions will be allowed to visit its fjords.
It follows research that claims cruise liners in Europe emit as many
toxic air pollutants as 1 billion cars.
After Venice banned large cruise liners from anchoring in
its historic site, it’s reported that air pollutants fell by 80%.
But hold on.
Shouldn’t the move to usingliquified natural gas solve all of this?
No carbon there, right?
"The easiest way to comply with the regulations on
sulfur, nitrogen oxides and carbon dioxide intensity
all at the same time is to use liquefied natural gas,
because it contains almost no sulfur,
and it emits about 25% less carbon dioxide
emissions than conventional fuels."
Bryan Comer is not convinced about liquified natural gas being used in
the shipping sector.
You see, LNG is made of methane –
a gas that doesn’t stay in the atmosphere as long as carbon dioxide,
but is 80 times more warming for our planet in the short term.
And what’s interesting about maritime companies using LNG is this:
"Many of them are choosing liquefied natural gas as their fuel,
and the engines that cruise ships use
tend to be those that emit the most amount of unburned methane
to the atmosphere, and we call that the methane slip."
This infrared camera shows a ship burning LNG.
The clouds you see illustrate the methane that’s escaping –
the methane slip.
The more methane, the bigger the cloud.
"The cruise ship industry emits about
30 million tons of greenhouse gases each year,
and that’s the same as 75 natural gas powered
power plants would emit each year.
For environmentalists here in Cozumel who oppose cruise ships,
they see a cull on the sector as critical:
"There are photographs where a diver appears
with a quantity of resources under his feet:
Sea turtle, lobster, grouper,
a large number of fish that were there in those times.
That photograph was what sold Cozumel to tourism.
And now we don't have that."
Back to the question of what’s powering this multi-billion-dollar industry.
Well, it’s clearly demand.
Just look at the size of Icon of the Seas.
Yet, it’s run on LNG – a fossil fuel made up of methane.
One of the drivers of global warming.
But whatever fuels that are being used – it's clear they’re in flux,
as the industry grapples with a
warming planet and tries to colour in between the lines.
For the more formidable lines, however – those of our environment,
we might already be over the edge:
"We don't want any more cruises in Cozumel.
The community opposes cruise ships."
Would you take a cruise?
Let us know in the comments below.
And if you liked this episode, please check out the Transforming Business
playlist for videos on topics just like this one.